PPE-Valuation Flashcards
1
Q
Should list price be used for valuation of assets?
A
-No simply a starting point for negotiations
2
Q
What’s the accounting for assets received in donation?
A
- Record at FMV
- Recognize revenue or gain
3
Q
How do we allocate purchase price of Group Purchases?
A
-Based on relative FMV’s
4
Q
What are the two Overhead Approaches for constructed assets?
A
- Incremental Overhead Approach
- Pro Rata Overhead Allocation Approach
5
Q
What’s accounting process when total cost of constructed asset exceeds market value?
A
-Recognize loss and record at market value
